Baby boomers: the ideal reverse mortgage candidate?
According to newly-released government data, 32% of Americans aged 65 to 69 are employed—the highest percentage in 55 years.
In addition, 19% of Americans aged 70 to 74 are still working, up from 11% in 1994.
Economists expect even higher rates of working seniors in the coming decades, for reasons that include longer lifespans, rising healthcare costs, and challenges building retirement savings.
Baby boomers and seniors can supplement living costs using a reverse mortgage
For those who don’t want to continue working during their retirement years, the reverse mortgage is a remarkable tool. It can provide additional income which may allow some seniors to retire.
Also known as a Home Equity Conversion Mortgage (HECM), a reverse mortgage converts part of your home equity (wealth) into a lump sum of cash, a monthly check, or a line of credit.
The reverse mortgage doesn’t need to be paid back as long as you live in the home, and you retain the title (ownership) of the home. This means you’re responsible for paying property taxes, homeowner’s insurance, and other expenses.
With Americans 62-and-older having a staggering $6.3 trillion worth of home equity as of June 2017, the reverse mortgage has become a potent tool for certain baby boomers and seniors.
Reverse mortgage eligibility
To be eligible for a reverse mortgage, the following requirements must be met:
Reverse mortgages can benefit baby boomers and seniors in a range of situations
While reverse mortgages aren’t meant for everyone, here are some situations they can be ideal.
Contact Open Mortgage to learn more about the reverse mortgage
If you’re interested in learning more about the reverse mortgage, we’re ready to help. Contact one of our friendly loan originators with any questions you have.
You can also download our free eGuide which provides simple-to-read information about the reverse mortgage.
Your email address will not be published. Required fields are marked *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Let's get started